One of our residents hasn't been paying their maintenance fees for a very long time (almost 4 years) - as you can imagine they are thousands of dollars in the hole. Despite the management company's attempt to get them to at least talk - all communications went unanswered, even when the collection attorney was involved. (Plus, in the past the board has worked with homeowners to keep them out of being foreclosed on by giving them a payment plan that benefited the homeowner more than the association).
A few weeks ago the management company got a notice from the county that their unit was going on a court ordered auction. So we figured we'd get a piece of the auction sale price (as per Florida law).
Well, today they played their card. They contacted the management company and insisted we knock half of the balance off of what they own and we allow them to pay off the rest at their leisure. Well, we can't do this, if we do it for them then we have to do it for everyone and if the association could afford that then we would cut the maintenance fees.
Then, they said that they were going to file for bankruptcy and weren't going to have to pay the back due fees or any future fees.
Guess what? There are some big holes in your logic.
First - the past due balance on the association fees are now in a lien against your property. Bankruptcy does not protect you completely from liens (like car loans, mortgages). Yes, the lien holders can't go after you financially but you still need to pay off the lien or they can foreclose / repossess on you. Yes, in Florida you don't lose your house in a foreclosure but this doesn't mean you don't have to pay your mortgage.
Second - future association fees are considered new debt which are not covered under the bankruptcy.
Go ahead - file for bankruptcy. You'll still need to pay us.
A few weeks ago the management company got a notice from the county that their unit was going on a court ordered auction. So we figured we'd get a piece of the auction sale price (as per Florida law).
Well, today they played their card. They contacted the management company and insisted we knock half of the balance off of what they own and we allow them to pay off the rest at their leisure. Well, we can't do this, if we do it for them then we have to do it for everyone and if the association could afford that then we would cut the maintenance fees.
Then, they said that they were going to file for bankruptcy and weren't going to have to pay the back due fees or any future fees.
Guess what? There are some big holes in your logic.
First - the past due balance on the association fees are now in a lien against your property. Bankruptcy does not protect you completely from liens (like car loans, mortgages). Yes, the lien holders can't go after you financially but you still need to pay off the lien or they can foreclose / repossess on you. Yes, in Florida you don't lose your house in a foreclosure but this doesn't mean you don't have to pay your mortgage.
Second - future association fees are considered new debt which are not covered under the bankruptcy.
Go ahead - file for bankruptcy. You'll still need to pay us.
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